Jack Ciesielski is dead-on in his post “An Accounting Vortex,” in which he describes the turbulent, spinning changes in accounting regulations and standards.

Specifically, he is referring to the SEC's quick reversal from a slowdown to a race to get to IFRS fast. 

Then there is the House bill exempting small-cap public companies from the internal control audits required under Section 404.

And we have to add the proposed “Perlmutter amendment” to the Financial Stability Improvement Act of 2009 to create a Federal Accounting Oversight Board (which has its origins in HR 1349). Check out Edith Orenstein's coverage at FEI's Financial Reporting Blog.

Wikipedia defines vortex as a spinning, often turbulent flow of fluid in which the speed and rate of rotation increases as you near the center. Based on that definition, I hope we are close to the center, as the rate of change is starting to get scary!

On the subject of Congressional intervention into accounting standards, MACPA members agree with the AICPA and FEI, which recently wrote in opposition to the Perlmutter amendment to create a FAOB Federal Accounting Oversight Board. In our professional issues updates / town hall meetings with more than 1,200 members participating, members unanimously and emphatically say, “Keep Congress and government out of financial accounting standard setting.” We will be ready to mobilize our members should this unnecessary amendment start to move. On the Senate side, Sen. Chris Dodd seems to be against government intervention.

What do you think: Should the federal government get involved in accounting standard setting?